2017 YEAR-END CUSTOMER GUIDE PRISM. 1 Year-End Customer Guide

Transcription

1 2017 YEAR-END CUSTOMER GUIDE PRISM 1

2 2017 Welcome to the Use this guide as a reference to lead you through the year-end process. The information contained in this customer guide is as upto-date as possible as of October 1, As new information becomes available, it is distributed via the following media: Banner pages included with your payroll Ceridian s web site, at Resources Guides Ceridian Customer Year-End Guides Ceridian s electronic newsletter, Ceridian Voice Newsletter. To receive the newsletter, submit your address at Please visit the online PHRIG (Payroll and HR Information Guide) at or Ceridian s Compliance Centre for up-to-date payroll and legislative information at Please be advised that the is a national document distributed to Ceridian customers across Canada. Differences may occur with respect to provincial and/or regional processes and procedures. If you are a customer of Ceridian Professional Services, there may be year-end procedures that apply to you that are not documented in this guide. Contact Professional Services for direction. If you have questions about how or if something applies to you, please contact your Service Delivery Team. The information in this guide is provided by Ceridian Canada Ltd. as a convenience to you. Ceridian does not warrant the accuracy or completeness of the information. Contents may be subject to change. Always check with the proper authority for the most current information available. 2

3 Table of Contents Ceridian Bulletin Board... 7 New in New for Important Topics to Review... 8 Resources for Year-End Information... 9 Self-Serve Tax Form Initiation... 9 Tax Forms on CD... 9 Online Tax Forms Powered by epost epost Subscription (2017 Tax Forms) epost Tax Form Holding Period and Release Default Holding Period Holding Period Override Imposed Release epost Registered Employees Dating of Payrolls Checklist of Year-End Activities November December January January February March Important Holiday, Bank, and Direct Deposit Dates Processing the First Pay of the New Year Important Dates for Employers with Direct Deposits (EFTs) Bank Holidays Year-End Reports Reviewing Important Information Required by Ceridian Required Employee Information Required Employer Information Calculating Pension Adjustments (PAs)

4 New in 2017 Processing Your Final Pay of the Year Signalling Your Final Pay Run of the Year Coding Your Final Pay Run of the Year Dating Your Final Pay of the Year Preventing CPP/QPP Deficiencies (When Processing a 27th or 53rd Pay of the Year) Biweekly and Weekly Payrolls Only What is a Masterfile and What Does it Have to do With Year-End? Changes on or Before the Final Pay of the Year Changes After the Final Pay of the Year PRISM at Year-End Setting up Your Final Payroll Run of Setting up a Pay Cycle for Your Final Payroll Run of Steps for Setting up the Pay Cycle Window Processing a Year-End Year-End Adjustment Runs (Y-Runs) Setting up a Pay Cycle for Your Y-Runs Steps for Setting up the Pay Cycle Table Steps for Setting up the Pay Cycle Window Creating a Transaction File for Your Y-Run Opening Your Year-End Adjustment Run Entering Y-Run Data Points to Note Accessing Payroll Registers Deleting the Original Y-Run Register Renaming and Re-importing the Register File Clearing Terminated Employees Reactivating Employees Setting Employer Defaults (Tax Exemptions) The First Pay of the New Year Terminations Electronic Filing Electronic Filing and Revenu Québec Year-End Adjustments Important Dates and Deadlines Electronic Filing Missed Tax Form Processing Deadline

5 5 New in 2017 Processing Year-End Adjustment Runs (Y-Runs) Mandatory Y-Run Information Coding Your Y-Run T4A Coding Requirements Characteristics and Features of Year-End Adjustment Runs Making Adjustments When Earnings are Stored by Province Moving all Earnings and Deductions Moving Part of the Earnings and Deductions Submitting Year-End Adjustments (Spreadsheet and Form Entries) Completing the Year-End Adjustment Spreadsheet Coding the Other Information Area of the T Special Comments: CRA Codes Completing Box 29 of the T4 Employment Codes How to Initiate the Production of Your Tax Forms with IVR IVR Interactive Voice Response Submission of Tax Forms T4/RL Filing Deadline for Electronic Filing Making Amendments After Tax Forms are Filed (after February 28, 2018) Tax Form Cancellations Issuing an Amended T4/T4A Issuing an Amended RL-1/RL Filing NR4 Tax Forms CRA Summaries Revenu Québec Summaries Provincial Health Care Levies & WCB Ontario Employer Health Tax (EHT) Debit or Credit Balance Ontario EHT Annual Exemption EHT Annual Year-End Return - Annual Remitters EHT Annual Year-End Return - Monthly Remitters Balancing EHT Payments - An Example Manitoba Health and Post SecondaryEducation Tax Levy (HE Levy) Québec Health Services Fund (QHSF) Québec CSST (Commission de la santé et de la sécurité du travail) Newfoundland and Labrador Health and Post Secondary Education Tax (HAPSET) Workers Compensation Board (WCB) Reports... 72

6 New in 2017 Workers Compensation Maximum Assessable Earnings for Troubleshooting APPENDIX A Canada Post Province and Territory Symbols APPENDIX B Province Codes Appendix C Tax Form Sort Options Glossary Formulaire d information pour le Fonds des services de santé du Québec / Québec Health Services Fund Information Form

7 Ceridian Bulletin Board New in 2017 New for 2018 The bulletin board is the section of the year-end guide where Ceridian introduces new enhancements and provides you with suggested topics for review, resource information, and an introduction to some of the tools Ceridian offers to enhance your year-end processing. Employee Consent for electronic T4s is no longer required Starting with the 2017 tax year, employers may make T4s accessible to employees electronically without documenting express consent. Public Transit Tax Credit Eliminated For 2017, only report in T4 Box 84 the costs for public transit services used before July 1, The tax credit is only available on costs for services from January 1, 2017 to June 30, T4 Box 40 should record the taxable benefit for the entire year. You will need to perform a manual adjustment if you offered this benefit in Canada Savings Bonds / Canada Premium Bonds Effective October 31, 2017, the government discontinued these programs and contributions were no longer accepted. Quebec: Contribution to Labour Standards (CNT) Effective January 2017, the CNT rate was reduced from 0.08% to 0.07% and the remuneration subject to the contribution increased from 71,500 to 72,500. Security Option Deduction For stock options granted under agreements concluded after February 21, 2017, the security option deduction is 50% (rather than 25%). Conditions apply. Consult with your advisors for guidance on potential 2017 RL-1 implications. 18 month EI benefits / Top-up & Leave policies Upcoming amendments will give parents the option of the current 12 month benefit period (at 55% of YMIE) or a new 18 month benefit period (at 33% of YMIE). A provincial amendment to similarly extend the parental leave period is proposed in Ontario (Bill 148). Home Relocation Loan Deduction T4 Code 37 amounts will be eliminated as of January 1, Alberta Employment Standards Changes Significant amendments in areas of holiday pay/eligibility, overtime banking, and leaves will become effective on January 1,

8 Important Topics to Review Ontario Employment Standards Changes Significant amendments in areas of holiday pay, overtime for multiple rate employees, vacation and leaves have been proposed in Bill 148 with a January 1, 2018 effective date. Ontario EHT exemption eliminated for designated members of a partnership Proposed to be effective no earlier than January 1, 2018, if passed, the EHT exemption would no longer be available to designated members of a partnership. British Columbia Medical Services Plan Effective January 1, 2018, premiums will be reduced by 50 percent for households with an annual net income of up to $120,000. BC has proposed to eliminate MSP premiums in the future. Volunteer firefighter and search and rescue volunteer tax credit Starting 2017, a new non-refundable tax credit can be claimed that provides a benefit of up to $152 per year, in addition to the existing federal tax credit. Saskatchewan - The Labour-sponsored Venture Capital Tax Credit rate is reduced from 20 percent to 17.5 percent, effective for the 2018 taxation year. New Brunswick Family Day First occurrence: February 19, 2018 (the third Monday in February) Nova Scotia - Basic Personal Amount, Age Amount, Spousal Amount, Amount for Eligible Dependant increasing for The enhancements are uniquely tied to income levels, with the full credit being received by those with taxable incomes less than $25,000. Quebec Source Deductions Return (TP1015.3) The method of calculating the Quebec employee basic/spousal amount and other amounts is changing for The basic/spousal amount will increase from $11,635 to $14,890 and other amounts are increased and indexed. Quebec Health Services Fund (HSF) Contribution rates (outside eligible primary & manufacturing sectors) will be reduced from 2.5% to 2.3% (for total payroll < $1M), reduced for total payroll between $1M 5M and 4.26% for total payroll > $5M. Fondaction The rate of the tax credit for the purchase of shares issued by Fondaction is expected to be reduced from 20% to 15% in June Important Topics to Review During the year-end process, please take the time to review the following sections of the year-end guide: epost Tax Form Holding Period and Release, page 11 Important Dates and Deadlines, page 49 How to Initiate the Production of Your Tax Forms with IVR, page 61 Troubleshooting, page 73 8

9 Resources for Year-End Information Resources for Year-End Information In addition to this guide, please refer to the following for more information on year-end and processing tax forms: For further details concerning payroll deductions, consult Canada Revenue Agency s (CRA s) Employers Guide - Payroll Deductions and Remittances (T4001) For Revenu Québec information, see their Guide for Employers: Source Deductions and Contributions ( Access the above sites and other sites such as federal, provincial, and territorial governments, international payroll & HR related sites, and payroll and HR associations directly from Ceridian s website. From click Resources Compliance Centre Ceridian s PHRIG Payroll and Human Resource Information Guide is available online via Ceridian s website. Self-Serve Tax Form Initiation Tax Forms on CD If you did not request your tax forms with your final pay of the year, Ceridian would like to remind you that, starting in January of the new year, all initial tax form requests must be made by you, via Ceridian s self-serve IVR (Interactive Voice Response) service. Using IVR provides fast, convenient self-service and bypasses phone queue wait times! IVR is available 24 hours a day, seven days a week. Please be prepared by ensuring that you have your IVR Branch ID, Payroll ID and PIN number on hand. If you do not have this information, please contact your Service Delivery Team for assistance. For more information on how to use IVR and when it is available, see How to Initiate the Production of Your Tax Forms with IVR, page 61. Ceridian can provide you with a copy of your 2017 employer tax forms on CD-ROM in.pdf format, viewable with Adobe Acrobat Reader. Features of this Product include: Tax forms are the same in appearance as actual paper forms. Password protection. In order to ensure the security and confidentiality of data, each CD is password protected. Please contact your Service Delivery Team to receive your password. Re-print lost or damaged employee forms on demand. Please be sure to blank out your Business Number, clearly mark the form as Duplicate Copy and sign and date the form. 9

10 Online Tax Forms Powered by epost Search Engine. Each CD is indexed by Employer Number, Last Name, First Name, Full Name, SIN, and Form Type, and provides you with the ability to search your tax forms using the built-in search functionality available with Adobe Reader. You can create a report, view, print, or any of the details you require without the need for paper or to backup and restore files. The default of this offering provides both paper copies of tax forms and a CD. Ceridian can suppress the print of the employer forms. The deadline to request a 2017 CD is March 31, Please contact your Account Executive or your Service Delivery Team for further information. Online Tax Forms Powered by epost Ceridian s online service offering provides you with the ability to have employee pay statements and tax forms delivered directly to your employees via epost, the online mail delivery service powered by Canada Post. This secure web-based service is available to your employees, 24 hours a day, 7 days a week, in English and French. Features of this service include: Electronic Postmark and RCMP-audited data security system Notification. If your employee chooses the option, epost will send an notification to notify them of new mail. Online storage of important documents for seven years Note: 2017 Online tax forms via epost are delivered in PDF format, and are available from December 1, 2017 March 30, Tax forms processed outside of this time frame will produce paper forms. epost Subscription (2017 Tax Forms) Employer registration must occur prior to, or with, the final payroll processing of the year. Please allow yourself additional time to complete the Ceridian agreement and for Ceridian to enter the required system option. Employee subscription to epost and adding Ceridian as a mailer, must be completed 24 hours before tax forms are processed. Please keep in mind that if an employee misses the opportunity to subscribe, they will receive paper tax forms and must wait until the following year-end to receive online tax forms. 10

11 Online Tax Forms Powered by epost epost Tax Form Holding Period and Release Default Holding Period Holding Period Override Imposed Release It is important to note that online tax forms are held by Ceridian for a default of 3 calendar days before being released to epost for delivery (pay statements are available on pay date). The purpose of the 3 day holding period is: 1. To allow for client review and verification of accuracy. 2. To provide the opportunity to re-run tax forms in situations where changes or updates are required. If tax forms are re-run within the 3 day holding period, the original tax forms will be overwritten with the new tax forms If the 3 day holding period has expired, subscribed employees will receive 2 copies of their tax form(s) in their epost mailbox (the date stamp will identify which form is the most current). Once tax forms have been processed, you may, on a per request basis, contact your Service Delivery Team to override the default setting to: Waive the 3 day waiting period, releasing tax forms to epost for delivery, or Defer the release to epost beyond the default 3 day holding period until further notice. You are required to contact Ceridian a second time when you are ready to have forms released to epost. Irrespective of the holding period, in order to ensure all employees receive their tax forms prior to CRA s and Revenu Québec s deadline of February 28, 2018, all pending employee tax forms will be released to epost for delivery on, February 22, Please contact your Service Delivery Team for further information. epost Registered Employees The year-end balancing report identifies when an employee will receive online tax forms. On the Employee Totals report, an E displays between the province code and employee status. For epost pay statements, please refer to your Payroll Register and Payroll EFT Summary. An (E) displays on the Payroll Register at the end of the banking information and on the Payroll EFT Summary before the sequence number. 11

12 Dating of Payrolls Dating of Payrolls Legislation requires that amounts (e.g. earnings, statutory deductions, etc.) belong to the year in which they are paid. This is determined by the payment date. For example, if a pay period ends on December 31, 2017 and is paid on January 4, 2018, this is considered earnings for 2018 and, therefore, to be included in the 2018 tax form. 12

13 Checklist of Year-End Activities November 2017 This checklist is your primary tool for processing your year-end with Ceridian. All tasks are sequentially ordered, and references to other sections of this guide are provided. Use this checklist to ensure that all necessary tasks are completed in order and on time. Action Deadline If you plan to attend Ceridian s Year-end Seminar, ensure you have registered. Visit Resources Guides Ceridian Customer Year-End Guides for details. To prepare for tax form initiation, ensure you have your IVR Branch ID, Payroll ID and PIN number. See How to Initiate the Production of Your Tax Forms with IVR, page 61 for details. When you receive your preliminary year-end reports package, follow the instructions for each report to ensure that the information it contains is correct as of the pay period ending date shown in the upper right-hand corner of each report. For each of the following items, verify that they are correct by checking the relevant reports. For further information see Year- End Reports, page 23. At least 5 days prior to your final input with a 2017 cheque date For each employee (including those on terminated status, verify: Name and address Social Insurance Number CPP/QPP, EI and QPIP (Québec Parental Insurance Plan) deficiencies Province(s) of employment for 2017 Verify Business Number(s) (BNs) and/or Québec Remittance Account Number(s) Verify EI/QPIP reduced rates, with associated BNs, for

14 December 2017 Action Deadline Review Earnings and Deduction/Benefit Matrix to ensure all codes are accurate and are directed to the appropriate box on the T4/RL-1. If your payroll includes employees in any of the following provinces, verify: Manitoba Health and Post Secondary Education Tax Number Ontario Employer Health Tax Number Newfoundland and Labrador Health and Post Secondary Education Tax Number Northwest Territories/Nunavut Payroll Tax Number Nova Scotia WCB account number and rate CSST employer number and rate, Revenu Québec Identification No. If applicable verify: Deferred Profit Sharing Plan Number(s) Registered Pension Plan Number(s) (plan # must be 7 numeric digits) If your payroll has employees in any of the provinces or territories that have medical/payroll tax plans (NL, ON, MB, QC, NT, NU) and the projected earnings for these jurisdictions for the new year may result in a change in the way that Ceridian calculates your provincial health care levy, please contact your Service Delivery Team. Plan for the first pay of 2018, and for any special bonus or vacation runs, if required. For date and schedule information, see Important Holiday, Bank, and Direct Deposit Dates, page 20. December 1, 2017 December 2017 Action Review your form counts for all payrolls under the same business registration number and ensure your filing method is set appropriately for mandatory electronic filing Deadline Prior to processing tax forms 14

15 December 2017 Action Deadline Verify and reconcile the remittance amounts made by Ceridian, on your behalf, during the year by comparing them with the reports from the appropriate government agency (For example: PD7A for Federal and TPZ-1015.R. 14(1,2,3,4)-v for Québec). Notify Ceridian, in writing, of any changes to your company s EI/QPIP reduced rates, CRA and Revenu Québec remittance frequencies, and/or WCB assessment rate effective for Advise Ceridian of any changes to your CSST assessment rate effective for 2018, if applicable (Québec employers only). Minimum 7 business days prior to your first payroll of 2018 If you have a weekly or biweekly payroll and your cheque date would normally fall on January 1, 2018, see Dating Your Final Pay of the Year, page 27. If pension adjustments (PAs) are being calculated by an actuary, ensure that they are available prior to processing your tax forms. See Calculating Pension Adjustments (PAs), page 24. If you have employees in Ontario, forward your annual EHT Exemption amount for 2018 to Ceridian. For further information, see Ontario Employer Health Tax (EHT), page 66 If you have employees in Nova Scotia, forward your 2018 WCB rates to Ceridian. If you have employees in Québec, inform Ceridian of your total Worldwide Wages amount for 2017 by completing and faxing the Formulaire d information pour le Fonds des services de santé du Québec / Québec Health Services Fund Information Form, page 79 to your Service Delivery Team. Minimum 7 business days prior to your first payroll of 2018 Minimum 7 business days prior to your first payroll of 2018 Minimum 7 business days prior to processing your first pay of 2018 Using the appropriate method for your input format, signal which payroll run will be the last one dated in For information about signalling, see Signalling Your Final Pay Run of the Year, page

16 January 2018 Action Deadline If you have employees in Québec, inform Ceridian of any changes to your CSST rates. Prism users: Perform year-end processing (see PRISM at Year- End, page 30). Confirm that your payroll output from the final pay of the year (where the year-end signal was processed) contains your new set of year-end balancing reports for verification. January 2018 Action Deadline To terminate employees in the first pay period of 2018, see The First Pay of the New Year, page 47. If you have a company pension plan under Code GE, and each employee is set in the previous year with a YTD maximum amount, these amounts must be re-entered in the new year. Please contact your Service Delivery Team for assistance. Ensure that tax exemption amounts for employees, other than basic single or basic married, are updated with your first payroll of the year. Deduction codes 1E-8E or 10E-89E allow for a target feature where the deduction automatically stops once the deduction reaches zero. If you are using this feature and the target amounts for the employees reached zero earlier in the year, you must enter new target amounts to activate the deduction at some point in the new year (e.g., United Way). Ensure that any exception tax (YD, YQ, TA or QA) amounts for employees who have CRA/Revenu Québec letters (for reductions in taxable remuneration) and/or TK3 or PK3 amounts for federal/provincial tax credits are reviewed and reset to zero on the first pay of the new year, or adjusted as required. Ensure that any commissioned employees tax amounts (YD, YQ and YE) are re-entered on the first pay of the new year based on new TD1X form information. First pay period in 2018 First pay period in 2018 First pay period in 2018 First pay period in

17 January February 2018 January February 2018 Action Deadline Review Ceridian s important dates and deadlines detailing when adjustments and y-runs must be received and processed, and when tax form initiation must occur. See Important Dates and Deadlines, page 49. If you are unable to meet any deadline, please contact your Service Delivery Team for advice on how to proceed. After processing and validating all required adjustments, initiate the production of your tax forms. See, How to Initiate the Production of Your Tax Forms with IVR, page 61. If you submitted adjustments to be processed for your tax forms after your last pay of 2017, you are responsible for remitting to the appropriate agencies any source deductions (Tax, CPP/QPP, EI, QPIP, CSST, WCB, etc.) caused by the adjustments, by the specified deadline imposed by those agencies. Along with your T4s/RL-1s, you will receive a new set of year-end balancing reports. Note: These year-end balancing reports are the same as those received with your last pay of the year, unless you made any yearend adjustments between your last pay of 2017 and the processing of your tax forms. These changes are reflected in these reports. Ensure that you have received: your new set of year-end balancing reports the correct number of tax forms Verify that the information reported on your tax forms is correct. If there are any discrepancies, please contact your Service Delivery Team immediately. After verifying that the T4s/RL-1s are correct, distribute them to your employees. February 28, 2018 Note: Failure to distribute tax forms to employees before this deadline may result in penalties (fines) being levied by CRA/Revenu Québec. For further information see Submission of Tax Forms, page

18 March 2018 Action If you have employees in British Columbia, you are responsible for filing your BC WCB reports and remittances (if applicable) for Your provincial WCB should communicate the rates at which to calculate your premiums owing. Deadline By the due date displayed on your form. If you have employees in Newfoundland and Labrador and the Newfoundland and Labrador gross earnings for 2017 are $1,200,000 or greater, you are responsible for submitting an Annual Declaration Return form, along with your T4 and/or T4A Summaries, to the Department of Finance. See Newfoundland and Labrador Health and Post Secondary Education Tax (HAPSET), page 71. If you have employees in Québec, you are responsible for submitting the RL Summaries (RLZ-1.S-V) to Revenu Québec. See Electronic Filing, page 62. If you have employees in Québec, you are responsible for filing your CNT levy and WSDRF with Revenu Québec (preferably along with your RL-1 Summary). If you have employees working in provinces other than Québec and Nova Scotia, you are responsible for remitting your WCB premiums (if applicable) for Your provincial WCB should communicate to you the rates at which to calculate the premiums owing. February 28, 2018 February 28, 2018 Please check with your WCB board for due dates March 2018 Action If you have employees in Ontario, you are responsible for filing an annual Ontario EHT return, to reconcile the annual tax due against the instalments made. This is the employer s responsibility, even if Ceridian remits your EHT premiums on your behalf. See Ontario Employer Health Tax (EHT), page 66. If you have employees in Québec, you are responsible for completing and filing your annual Québec CSST report to reconcile the annual premiums due against the instalments made in Deadline March 15, 2018 March 15,

19 March 2018 Action If you have employees in Ontario, you are responsible for filing your Ontario WSIB reports and remittances (if applicable) for The WSIB should communicate to you the rates at which to calculate your premiums owing. If you have employees in Manitoba and the Manitoba gross earnings for 2017 are $1,250,000 or greater, you are required to file an annual report that includes a copy of your information summaries (i.e. T4, T4A) requested from CRA. See Manitoba Health and Post SecondaryEducation Tax, page 69. Deadline March 31, 2018 March 31,

20 Important Holiday, Bank, and Direct Deposit Dates Year-end is a process that requires much consideration to important dates and deadlines, especially around the holiday season, near the end of December and beginning of January. This section lists all of the important holiday dates, bank dates, and direct deposit dates that you should consider during the year-end season. Processing the First Pay of the New Year If you plan to submit your first pay of the new year (2018 cheque date) prior to December 11, 2017, please contact your Service Delivery Team in advance, to ensure the new 2018 CRA/Revenu Québectaxation tables are in place. ACTION REQUIRED: Please contact your Service Delivery Team to determine if it is possible to process your 2018 payroll. Important Dates for Employers with Direct Deposits (EFTs) In November, review a December calendar to ensure your December and January payrolls are processed early enough to guarantee deposits are made on time. The following input schedule is recommended for releasing EFT (Electronic Funds Transfer) payments so that all employees receive payment on the due date. EFT Payment Date Friday, December 22, 2017 Wednesday, December 27, 2017 Thursday, December 28, 2017 Friday, December 29, 2017 Tuesday, January 2, 2018 Wednesday, January 3, 2018 Thursday, January 4, 2018 Friday, January 5, 2018 Input to Ceridian Tuesday, December 19, 2017 Wednesday, December 20, 2017 Thursday, December 21, 2017 Friday, December 22, 2017 Wednesday, December 28, 2017 Thursday, December 28, 2017 Friday, December 29, 2017 Tuesday, January 2, 2018 Any payrolls processed outside of these recommended guidelines are processed on a best-effort basis by the receiving banking institutions. Ceridian is unable to speed up the processing of deposits with the banks once the EFT information has been released to them. Due to bank closures, no EFT files are processed on Monday, December 25, 2017, Tuesday, December 26, 2017, and Monday, January 1,

21 2018 Bank Holidays 2018 Bank Holidays The Canadian Bankers Association has advised that federally regulated banking institutions are obligated under federal law to observe the statutory holidays stipulated in the Canada Labour Code. The observance of provincially legislated holidays is a discretionary business decision made by each bank. It is recommended that you contact your banking institution directly regarding their holiday schedule or regarding any days of interest Date Holiday Bank Holiday MondayJanuary 1 New Year s Day (actual) Bank Tuesday January 2 Monday February 12 Monday February 19 Day After New Year s Day (QC) Provincial (British Columbia) Family Day (AB, ON, SK, NB) Islander Day (PE) Louis Riel Day (MB) Nova Scotia Heritage Day (NS) Bank and Clothing Industry for Quebec Only Bank for BC Only Bank for Multiple Provinces Friday February 23 Yukon Heritage Day (YT) Bank for YT Only Friday March 30 Good Friday Bank Monday May 21 ThursdayJune 21 National Patriots Day (QC) Victoria Day National Aboriginal Day (NT, YK) Bank Bank for NT and Yukon Sunday June 24 National Day (QC - actual) Bank for Quebec Only Monday June 25 National Day (QC - observed) Sunday July 1 Canada Day (actual) Bank Monday July 2 Canada Day (observed) Bank Bank for Quebec Only 21

22 2018 Date Holiday Bank Holiday Monday August 6 British Columbia Day (BC) Saskatchewan Day (SK) New Brunswick Day (NB) 1 st Monday in Aug. (NU/NT) Optional Civic Holiday (ON/PE) Optional Heritage Day (AB) Optional Natal Day (NS) Optional Terry Fox Day (MB) Bank for multiple provinces Monday August 20 Discovery Day (YT) Bank for YT Only Monday September 3 Labour Day Bank Monday October 8 Thanksgiving day Bank Sunday November 11 Remembrance Day (actual) Bank Monday November 12 Remembrance Day (observed) Bank Tuesday December 25 Christmas Bank Wednesday December 26 Boxing Day Bank 22

23 Year-End Reports Because the year-end process can be very involved, it is important to start looking at, and adjusting, your employee information as early as possible. Where possible, you should make your adjustments in November, to ensure that all information is accurate and complete for your final pay submission at the end of the year. With your first payroll with a cheque date in November, you will receive your year-end preliminary reports package, which includes the following reports: Tax Returns Exception Report General Client Information Earnings and Deduction/Benefit Matrix Reports Name, Address and S.I.N. Report CPP/QPP Deficiency Report EI Premium Deficiency Report QPIP Premium Deficiency Report T4/T4A Employee Totals Report T4/T4A Recap Reports Relevé 1 and 2 Employee Totals Report (if applicable) Relevé 1 and 2 Recap Report (if applicable) Follow the instructions accompanying each report to ensure that the information it contains is correct as of the Pay Period Ending date shown in the upper right-hand corner. With your last pay of the year, you receive the same set of reports, with the following differences: The Name, Address and S.I.N. Report is not included The WCB Assessable Earnings Report is included For Ontario employers, the Ontario EHT (Employer Health Tax) Report is included Note: To commence your review earlier in the year, the above package of reports can be requested off cycle throughout the year. Please contact your Service Delivery Team to request a package. (Additional service fees apply.) Reviewing Important Information Required by Ceridian It is necessary to have the following information on file, where applicable. Review the relevant reports to ensure that all information listed below appears correctly. If any item(s) are either missing or incorrect, please advise Ceridian as soon as possible. 23

24 Calculating Pension Adjustments (PAs) Required Employee Information The following information is required for each employee, including those in a terminated status: Current address, including province/territory and postal code (see Canada Post Province and Territory Symbols, page 75) Social Insurance Number (S.I.N.) Note: An invalid or missing Social Insurance Number may result in a penalty imposed by CRA or Revenu Québec. Required Employer Information Business Numbers (BNs) - Confirm these numbers are correct by comparing them to your CRA PD7A form. PD7As are available online through CRA s My Business Account. Note: If your BN number(s) are missing or invalid, tax forms are not produced. Province of Québec Remittance Identification Number - Confirm this number is correct by comparing it to your Revenu Québec form TPZ 1015.R.14.#-V. EI reduced rates, with associated BNs, for 2018 Remittance Frequency changes Manitoba Remittance Number for Health and Post Secondary Education Tax Ontario Employer Health Tax Number Newfoundland and Labrador Health and Post Secondary Education Tax Number Northwest Territories/Nunavut Payroll Tax Number Nova Scotia WCB account number and rate WCB/WSIB/CSST rate changes Deferred Profit Sharing Plan Number(s) Registered Pension Plan Number(s) - must be 7 numeric digits. Confirm the accuracy of these numbers by comparing them to your policy plans. Total Worldwide Wages from previous year for QHSF Calculating Pension Adjustments (PAs) Refer to CRA s Pension Adjustment Guide (Publication No. T4084) for a detailed explanation of the PA calculation for each different type of plan (i.e., money purchase, deferred profit sharing, defined benefit). The maximum reportable pension adjustments for 2017 are: $26,230 for Money Purchase plans $13,115 for Deferred Profit Sharing plans 24

25 Calculating Pension Adjustments (PAs) $25,630 for Defined Benefit plan [($2, x 9) - $600] Note: If you have pension adjustments to report and an actuary is providing the details for you, ensure they are aware that you must have the information prior to processing your tax forms - especially if you wish to have your tax forms electronically filed by Ceridian. Refer to the Deduction/Benefit Matrix included with your year-end report package to confirm that a code exists to report the PA amounts. 25

26 Processing Your Final Pay of the Year Signalling Your Final Pay Run of the Year An essential part of the year-end process is identifying which payroll run is the last for the tax year. There are two opportunities to enter this signal, the last payroll processed in the current year, or the first payroll processed in the new year. This signal performs four very important tasks: 1. Resets year-to-date totals to zero for the first pay of the new year (January 2018) 2. Takes a copy or snapshot of the 2017 year-to-date totals to be used for 2017 tax form production 3. Produces a new and complete set of 2017 year-end balancing reports for verification 4. Causes the statutory deduction calculations for 2018 to apply to the first run of the new year (with a cheque date of 2018). Coding Your Final Pay Run of the Year Select one of the following year-end codes to indicate that the payroll you are transmitting is the final payroll of the tax year (see the appropriate section of this guide for detailed instructions on where and how to enter the code according to your input method or product type): Note: It is very important that any year-end signal (A, B, C or M, N, O) is transmitted and processed ONLY on the pay(s) for which you intend to reset the year-to-dates to zero (this can be on a regular run and/or an extra run). Code Code A: Code B: Code C: Description Resets all YTD earnings, deductions, company portions, taxable benefits and any prepaid CPP/QPP/EI/QPIP to zero before the first pay of the new year is processed. Same as Code A except that the CE YTD column is not reset to zero. An example would be if you were using the CE column for loan deductions or for tax-paid vacation pay. Same as Code A except the CE and CR YTDs are not reset to zero. Note: Vacation pay (VA), Holiday pay (WA), Sick time (SE) accumulators, and garnishees are not zeroed out, nor are any target values on file and/or commencement dates associated with targets. If you have any deduction/benefit codes that should NOT be reset to zero in the new year, please contact your Service Delivery Team for assistance. 26

27 Dating Your Final Pay of the Year If the year-end signal is missed on the final pay of the year, you still have the ability to clear out the YTD totals on the first run of the new year, by entering one of the following codes in the appropriate field: Code Code M: Code N: Code O: Description Same as Code A, however zeroing is done prior to the processing of the current payroll run. Same as Code B, however zeroing is done prior to the processing of the current payroll run. Same as Code C, however zeroing is done prior to the processing of the current payroll run. Note: For Ceridian Prism users remember to remove the M, N or O before the next payroll run to avoid clearing the Year-to-Date totals again. Dating Your Final Pay of the Year Legislation requires that earnings belong to the year in which they are paid. This is determined by the cheque date. For example, if a pay period ends on December 31, 2017, and is paid on January 5, 2018, this is considered earnings for 2018, and therefore to be included on the 2018 tax form. If the cheque date for your final pay of 2017 would normally fall on January 2, 2018, you must decide if you are paying your employees on the banking day before (December 31, 2017) or after (January 4, 2018) that date. If you pay them before, this could create an additional pay period in 2017 for weekly and biweekly payrolls. If this affects you, follow the instructions in Preventing CPP/QPP Deficiencies (When Processing a 27th or 53rd Pay of the Year), page 27. Preventing CPP/QPP Deficiencies (When Processing a 27th or 53rd Pay of the Year) Biweekly and Weekly Payrolls Only Every 7th year for weekly pay frequencies, and 11th year for bi-weekly pay frequencies, employers process an extra pay of the year (27th or 53rd). In these instances, the CPP/QPP exempt earnings should not be applied. The following table provides you with the required Ceridian code that must be processed and where to enter that code. Please adjust your pay cycles accordingly. 27

28 What is a Masterfile and What Does it Have to do With Year-End? Product Description PRISM On the New Pay window, enter the pay period as 53 (weekly) or 27 (biweekly). In the Pay Cycle for Last Pay of the Year (Setup Pay Cycle), enter P in the Special Pay field. Note: This signal needs to be removed after the payroll is processed, as it is not valid for the subsequent year-end processing. What is a Masterfile and What Does it Have to do With Year-End? No matter what type of payroll you have, Ceridian maintains a masterfile for your payroll containing all the basic information required for your payroll processing, including employee names, addresses and S.I.N. This information is printed on your T4s/RL-1s. Your masterfile can be updated at any time, although it is particularly important to ensure that any changes, which apply to your 2017 payroll, are input on or before your last pay of the year. Changes on or Before the Final Pay of the Year To have the correct information appear on the T4s/RL-1s: When you receive your preliminary year-end reports package, verify the information in the reports and submit any changes with your payroll on or before the final pay of the year. Name, address, and S.I.N. changes should be updated through your regular data entry. Remember to use the official 2-letter province/territory symbols see Canada Post Province and Territory Symbols, page 75. This ensures that your masterfile information is kept current with the masterfile information on Ceridian's system. Note: If this is not done prior to or with your final pay of the year, you need to enter this information as a year-end adjustment AND then re-enter it with the first regular run of the new year. Changes After the Final Pay of the Year If you have additional 2017 changes after the final pay of the year has been processed, a year-end adjustment run(s) (y-run) must be submitted for processing in January or February to update your tax forms. See Year-End Adjustments, page 49. If you have additional 2017 changes after the final pay of the year has been processed and this is determined prior to December 31, an extra run (E-run) may be initiated with a cheque date no later than December

29 What is a Masterfile and What Does it Have to do With Year-End? Should you wish to exercise this option (E-Run): The year-end signal used with your final run must be repeated to ensure the information is included in the correct taxation year. The payment date must be December 31 to ensure that statutory deductions are allocated to the correct taxation year with CRA/Revenu Québec. EFT payments must be suppressed if processed after December 24. Follow the guidelines for processing an E-run. Note: If you have any questions regarding processing an E-run to perform these adjustments, please contact your Service Delivery Team. 29

30 PRISM at Year-End Setting up Your Final Payroll Run of 2017 In addition to following the same processing steps you would for any other run of the year, you must also complete some additional steps to close off your payroll for the year. Setting up a Pay Cycle for Your Final Payroll Run of 2017 Your final run must contain your year-end signal as well as any deduction and monthend signals. Only one pay cycle can be attached to a particular transaction file. For the purposes of your final run of 2017 the pay cycle table already includes a blank template for Last Payroll of the Year, which can be adjusted with your appropriate pay cycle information. The pay cycle for the Last Payroll of the Year must contain your yearend signal as well as all other pertinent information that would normally be entered for that particular run. For example, if on your final payroll run of 2017 you would normally use the pay cycle 2nd Pay of the Month (which signals your deductions A, B, D, F and a Journal Entry), you must also have this deduction and month-end criteria on the pay cycle for the Last Payroll of the Year. There is a Copy feature within PRISM to assist you. If you normally use the pay cycle 2nd Pay of the Month, you can copy the template information to the Last Payroll of the Year; then all that is necessary is to add the appropriate year-end signal to the Last Payroll of the Year template. Note: The following screen shot is just a SAMPLE. Please do not use these dates or details for actual input. 30

31 Setting up Your Final Payroll Run of 2017 Steps for Setting up the Pay Cycle Window To set up the Pay Cycle window: 1. From PRISM Manager, select Setup Pay Cycle. 2. Click Copy. 3. Enter the Employer Number in the Copy from Employer field and the Pay Cycle to copy from. 4. In the to Employer field, enter the Employer Number again and the Pay Cycle Y in the Cycle field. The example below copies the information from the template for 2-2nd Pay of the Month to the template for Last Payroll of the Year. 5. Click to save. Note: The following screen shot is just a SAMPLE. Please do not use these dates or details for actual input. 31

32 Processing a Year-End 6. Select the pay cycle for Last Payroll of the Year (which now contains the signals for deductions, benefits and month-end). 7. Enter the appropriate year-end code in the Year-End Indicator field near the bottom right-hand side of the window (see Coding Your Final Pay Run of the Year, page 26). 8. Click Update to save. Processing a Year-End Use the New Pay window to create a new Transaction File for your final payroll run of Note: The following screen shot is just a SAMPLE. Please do not use these dates or details for actual input. 32

33 Year-End Adjustment Runs (Y-Runs) Choose Y as the Pay Cycle, as it now contains the appropriate signals. Proceed with entering your payroll information as usual. However, when you transmit this file, Ceridian knows it is your final payroll run of Note: When setting up Pay Period 1 for 2018, ensure that the Send Date is in the new year. Year-End Adjustment Runs (Y-Runs) To make changes to employee information after year-end has been processed and the first pay of the new year has been processed, you must perform a year-end adjustment run (y-run). Note: Multiple adjustment runs can be processed. However, charges do apply to each adjustment run. Where possible, it is recommended that you gather all adjustments and process them at one time. Setting up a Pay Cycle for Your Y-Runs For purposes of a year-end adjustment run, the pay cycle table must first be set up before you are able to choose it as an option on the Pay Cycle window. The Pay Cycle window itself must then be set up to identify the transaction file as a year-end adjustment run. Following are the steps for both. 33

34 Year-End Adjustment Runs (Y-Runs) Steps for Setting up the Pay Cycle Table To set up the Pay Cycle Table: 1. From PRISM Manager, select Tables All Tables. 2. Enter 354. This enables you to create an option for processing a year-end adjustment run if you have not done so before. (If you already have an entry set up in the Pay Cycle Table for a Year-end Adjustment Run, proceed to Steps for Setting up the Pay Cycle Window, page 34). 3. Type YE in the Key field and press ENTER. 4. Press ENTER when you receive the following message: 5. In the English field, type Year-end Adjustment Run. 6. Click Update to save. 7. Exit this menu. Steps for Setting up the Pay Cycle Window To set up the Pay Cycle window: 1. From PRISM Manager, select Setup Pay Cycle. 2. In the Pay Cycle field, click on the down-arrow button to display the Pay Cycle Description table. 3. From the table, select Year-end Adjustment Run. It is not necessary to select any deductions as these sections are ignored anyway. 4. In the Special Pay field, choose the option Y Year-end Adjust. Run as shown here. 34

35 Year-End Adjustment Runs (Y-Runs) 5. Click Update to save. Creating a Transaction File for Your Y-Run Use the New Pay window to create the new transaction file. Enter the following values. Send Date Cheque Date Pay Period End Pay Cycle Pay Period Number Enter a send date after January 1, 2018, but prior to the send date of your first regular payroll of January 2018 and that has not previously been used as a send date. If a future date is entered as the Send Date, the data is not processed. The description for the file should identify it as a y-run for A suggestion is to name it 2017 y-run #1, and number any subsequent adjustment runs correspondingly. Enter the same cheque date used for the final payroll that processed in December 2017 (the cheque date MUST be a 2017 date or the y-run will reject). Keep in mind that a y-run generates no payments. Enter the pay period end date used for the final payroll processed in Choose the pay cycle you created named Year-end Adjustment Run. Enter the same Pay Period Number used for the final payroll processed in

36 Year-End Adjustment Runs (Y-Runs) Opening Your Year-End Adjustment Run The Employer Selection window is where you enter the Employer number of the payroll to access, and select the pre-defined transaction file where your y-run data is stored until you send it to Ceridian for processing. To open your Year-end Adjustment Run: 1. Select File Open Pay. 2. Enter your 4-digit Employer number in the Employer Number field. 3. Select your appropriate y-run file as named previously in the Transaction File field. 4. Proceed with entering your adjustments. If you receive a message stating that this y-run is a Future Dated Transaction File, do not key to or send this file as the Send Date is not in the past and data is not processed if you continue. Delete this transaction file and set up another New Pay for a y-run with a Send Date in the past. To delete this transaction file: 1. Select File New Pay and open the transaction file you just created. 2. Edit the description to read Y-run - wrong send date. 3. Click Update. Entering Y-Run Data 4. When prompted with the Database Action Request, select Delete. IMPORTANT: Enter all year-end adjustments for earnings and deductions in the Data Entry window according to the instructions in Year-End Adjustments, page

37 Year-End Adjustment Runs (Y-Runs) Points to Note When adjustments are complete: balance your totals verify your data transmit the file to Ceridian as usual. It may be necessary to modify your filter options so that all employees appear. From the main menu, click Setup Defaults User. When keying your changes in either Reversal or Manual mode you are prompted for a PO value, which is an EI/QPIP PPN (Pay Period Number) override. Either delete this PO code or continue to key it as a reference for the corrections you are making. Remember that Record of Employment EI history and QPIP history is not updated for a y-run. You need to key any EI history and QPIP history (if applicable) corrections to a Regular pay file in If multiple y-runs are processed, repeat the same cheque date, pay period end date, pay cycle and pay period number (the cheque date MUST be a 2017 date or the y-run will reject). However, remember to identify multiple y-runs with different descriptions use a new Send date following the instructions in Creating a Transaction File for Your Y-Run, page 35. The order of the processed y-runs can be identified based on the run date and run number printed in the lower right-hand corner of your reports. 37

38 Accessing Payroll Registers Process as many y-runs as required before initiating the production of your Tax Forms. If additional y-runs are required, ensure that you are using a new file each time. Do not send previously processed y-run files as this only serves to have the previous transactions processed again. Note the exception of special codes Z31-Z50. See Coding the Other Information Area of the T4, page 56. If multiple y-runs are required, adjustments keyed should reflect the additional change required since the last y-run was processed, with the exception of special codes Z31-Z50. Terminated employees added for the purposes of year-end processing only are not deleted from your database. If required, code them with a last day of work less than your final pay period ending date of the year. These employees are then removed when you run your Clear Terminated process. Accessing Payroll Registers The Payroll Register displays, for each employee, the current and year-to-date information on hours and earnings, statutory, non-statutory, miscellaneous deductions, EI and QPIP information. It is important to note that T4/RL-1 forms and reports are produced at year-end based on the year-to-date information that appears on the last register of the year (unless a y-run is processed). Register files are transmitted to you electronically so that you can view the current register information on your computer, and enables you to generate reports by accessing information from these files. The files are retrieved from Ceridian using the Communications Receive process, and stored in the PRISM98\REG directory. 38

39 Clearing Terminated Employees To convert the y-run register into a format readable by PRISM: 1. Delete the original y-run register. See Deleting the Original Y-Run Register, page Rename and re-import the y-run register. See Renaming and Re-importing the Register File, page 39. Deleting the Original Y-Run Register To delete the original y-run register: 1. From PRISM Manager, click File Delete Custom. 2. Choose your Employer Number at the top of the window. 3. Select the Register radio button. 4. Select the y-run register in the list box and click Purge Selected. Renaming and Re-importing the Register File To rename and re-import the register file: 1. In order for PRISM to view this register, you must rename the file. In the \PRISM98\REG directory, rename the y-run register file. For example, if the register file name is W5000Y46.RE# after it has been imported (5000 = employer number), rename it to W REG. Do not allow this new filename to overwrite any existing files, or you may lose previous register files - e.g., if W REG exists, select another smaller unused 900 number. Note: If you process more than one y-run, you need to repeat this process for each register file 2. In PRISM, click File Import Register and import the W REG file. Clearing Terminated Employees This mandatory process is performed as part of PRISM s year-end procedures. This procedure moves terminated employees from the active Employer number to payroll 9999 where they remain (on your database only) unless an employee is reactivated using the Setup Reactivate EE function. If you are processing a y-run, it is best not to run Clear Terminated until after your final y-run for This allows adjustments to the employees who are terminated. After your last y-run has been processed, Clear Terminated should be run, but only for employees who were terminated prior to the last Pay Period Ending Date of When you send your final payroll of 2017 for processing, Ceridian deletes all of your Terminated (status T ) employees upon receipt of your Year-End Signal. This occurs automatically at Ceridian regardless of when you choose to run Clear Terminated at your office. It is important to run Clear Terminated to ensure that your database matches the current masterfile Ceridian has on file. Failure to do so causes errors in processing 39

40 Clearing Terminated Employees should you rehire an employee from the previous year. The employees will show as No Employee Name. Once all changes have been processed to your 2017 masterfile and you are confident that there are no further adjustments required, you are ready to perform this process. If no y- runs are required AND this determination is made before you process your first run, use the steps in Option 1. Otherwise, proceed to Option 2. Note: It is VERY IMPORTANT to run the Clear Terminated process to ensure that your Prism database matches the current masterfile Ceridian has on file. Failure to do so causes errors in processing should you rehire an employee from the previous year. It is recommended that you make a backup of your current database prior to performing this function. (Ceridian does not maintain a backup of your database.) OPTION 1 - No year-end adjustment run is submitted. Process is completed prior to any data entry to Pay Period 1. To clear terminated employees: 1. From PRISM Manager, select Setup Clear Terminated. The following message appears. 2. If you are running Clear Terminated simultaneous with Ceridian running Clear Terminated (between your final run of 2017 and your first run of 2018), click Yes. A confirmation message appears. 3. Click Yes. Once the procedure has completed, the following message appears. 40

41 Clearing Terminated Employees 4. Click OK. Note: This process must be done for each Employer number in your PRISM database. OPTION 2 - Year-end adjustment run has been submitted and/or Pay Period 1 has already been processed. This option is used so that 2017 terminations remain in your current database. To clear terminated employees: 1. From PRISM Manager, select Setup Clear Terminated. The following message appears. 2. If you have processed a y-run and are clearing only employees who terminated in 2017, click No. The following screen appears. 41

42 Clearing Terminated Employees 3. Click the Selection Criteria at the bottom of the window. This function allows you to choose selection criteria defining all employees who have a termination date less than or equal to that of your final Pay Period Ending date of For example, if your final Pay Period Ending date is 2017/12/15, then you need to select the criteria to clear employees with a termination date less than 2017/12/16. (In other words, the Pay Period Ending date plus one day.) 42

43 Clearing Terminated Employees 4. Click Update PRISM displays the total number of employees as well as the names of the employees that will be moved to payroll Once you are satisfied that all employees shown on this window are correct, click Update (green checkmark). 6. Click the icon to the right of the window with the red slash through it. This moves only the selected employees. 43

44 Reactivating Employees Note: This process has to be done for each Employer number in your PRISM database. Q: What should I do if I have already run Clear Terminated and I want to do a y-run? A: If you have already run Clear Terminated, you can simply reactivate the employees who need year-end adjustments on the y-run. To reactivate the employees who need year-end adjustments on the y-run: 1. Click Setup Reactivate EE (see Reactivating Employees, page 44). 2. Key their adjustments. 3. On the y-run, put the employees back to T status on the Employee window. 4. After the y-run is completed, follow the instructions in Clearing Terminated Employees, page 39, to once again clear the terminated employees back to payroll 9999 based on the termination date. Reactivating Employees This procedure allows you to move a terminated employee from payroll 9999 back to the active Employer number. It is primarily used to rehire employees who were terminated during a previous calendar year. To reactivate employees: 1. From PRISM Manager, click Setup Reactivate EE. A list of cleared terminated employees appears. 44

45 Reactivating Employees 2. Double-click on the employee to reactivate. The following window appears, containing the basic masterfile information last on file for this employee. 3. In the lower section of the window, key in the Employer number (ER#) and employee number (EE#) to use (be sure not to reuse an employee number that has already been assigned in the current year). The displayed information for this employee is sent with the transaction file indicated at the bottom of the window to Ceridian, where the employee is processed as a new hire (remember, Ceridian has already removed this employee from their database at the end of 2017). Note: Only the information shown above is restored. All other previous masterfile information that you would like reinstated must be re-keyed. This includes the employee s rate of pay, banking information and permanent amounts. Any of the information shown above can be changed in regular data entry windows, if required. 4. Click The following message may appear (if you have the HR modules turned on). 5. Click No. The following message appears. 45

46 Setting Employer Defaults (Tax Exemptions) 6. Click OK. Setting Employer Defaults (Tax Exemptions) The Employer Defaults window is used to set up defaults that are specific to your payroll. If the amount for the basic Federal Tax Exemption or Provincial Tax Exemption has changed for the new year, change it here, so that any new employees keyed after this change has been made are hired with the correct amount. 46

47 The First Pay of the New Year Terminations Terminating employees on the first pay of the new year requires special status codes. The codes are dependant on whether or not you intend to keep the employee on the company masterfile. To retain Ceridian masterfile information for employees terminating in the first pay of 2018, Status codes U, R or F should be used for those employees. Status code T should NOT be used at this time, as it immediately deletes the employee information from the Ceridian 2018 masterfile, which may be required at next year-end for T4/RL-1 reporting. Any adjustments keyed on the first run of the new year to a status T employee are ignored and dropped, and therefore do not exist if required at year-end for T4/RL-1 reporting. Note: ROE only runs cannot be processed prior to pay period 1 being transmitted and processed. An extra run must be initiated to prepare your masterfile for the new year. Please contact your Service Delivery Team for further details. 47

48 Electronic Filing Ceridian files all tax forms electronically. For Ceridian s filing deadlines, see Important Dates and Deadlines, page 49. Failure to meet Ceridian s filing deadline could result in you, the employer, being responsible for filing your company s tax information to CRA and Revenu Québec electronically using an alternate method. Note: Failure to file electronically where required by CRA and Revenu Québec may result in penalties/fines being levied. For more information on filing tax forms electronically, go to the CRA Website at Electronic Filing and Revenu Québec Revenu Québec requires employers filing more than 50 RL slips of a same type to file them online. 48

49 Year-End Adjustments It is recommended that all changes required to be included in the T4s/RLs are updated to your masterfile on or before the final run of the year. However, this is not always possible, as some information may not be available to you until early in the new year. It is your responsibility to ensure that all year-end adjustments are properly submitted using the correct system codes for the input method that you use. In order to ensure that these corrections amend your 2017 year-to-dates, and not 2018, a special processing run must be created. This is called a year-end adjustment run or y-run. Note: Additional charges apply for this service. Important Dates and Deadlines Electronic Filing It is important to remember that with the year-end process and legislative requirements (for both you, the employer, and Ceridian), there are a number of important dates and deadlines to keep in mind. Review the following information and keep it easily available throughout the tax season. Activity Deadline Y-run adjustments to be keyed by Ceridian Additional service charges may apply. Y-run adjustments can only be done after the first pay of the new year has processed. February 16, Y-run submission February 16, 2018 Tax form initiation February 23, 2018 Missed Tax Form Processing Deadline Ensure you provide Ceridian with notification of these adjustments and allow for a minimum of 7 business days for Ceridian to enter data. Ceridian s tax form processing deadline is February 23, You could face penalties for late filing. It is recommended that you process your tax forms prior to Ceridian s deadline of February 23, 2018, and resolve any issues with amended tax forms closely thereafter. Important: Please note, there will be no penalties on AMENDED forms that were included in your original electronic file to CRA. Any NEW forms created after the fact may be considered late by CRA and you may still be subject to CRA penalties. If you 49

50 Processing Year-End Adjustment Runs (Y-Runs) discover that you have missed a form after your electronic file has been submitted, please contact CRA and advise them immediately. Issuing of penalties regarding tax filing is at the discretion of CRA, and there may be situations where an assessment is issued (by CRA) due to circumstances not related to tax form activities handled by Ceridian. For more information on filing electronically directly to CRA, please visit their site at Processing Year-End Adjustment Runs (Y-Runs) If you have already processed the first pay of the new year, year-end adjustment runs enable you to submit adjustments that affect your employees 2017 year-to-dates and tax forms. Ceridian s system then processes this information and sends back to you a complete set of updated payroll and year-end reports. Other reports may be available; simply make your request known to your Service Delivery Team - they will be able to tell you the cost and timeframe involved in getting them for you. Note: Multiple adjustment runs can be processed. However, charges do apply to each adjustment run. Where possible, it is recommended that you gather all adjustments and process them at one time. Mandatory Y-Run Information Coding Your Y-Run If you have adjustments to process, submit your year-end adjustment run after you have processed the first payroll of the new year. Note: If you are a semi-monthly or monthly customer, and you are required to process a y-run prior to processing a 2018 payroll, please contact your Service Delivery Team for assistance. The year-end adjustment transaction must have the same cheque date, pay period ending date, and pay period number that was used on the last pay of If the cheque date is not a 2017 date, the y-run will reject. Year-end adjustment runs cannot be submitted with a regular payroll run. Keep in mind that you should transmit only one transmission, per payroll, per Ceridian production run. Adjustments submitted are not replacement entries. Enter changes to increase or decrease the existing YTD total to the desired amount. Entries should be made in Reversal or Manual mode. Entries cannot be made in 2nd cheque mode. 50

51 Processing Year-End Adjustment Runs (Y-Runs) Adjustments done in Reversal or Manual mode do not have to balance since payments are not generated (as would normally occur with out-of-balance manuals/reversals). If you leave them out of balance, an offsetting Excess Deduction (XD) code is generated. These XD values do not carry forward into your current year s masterfile. Should you wish to act on them in 2017, additional coding in 2017 is required. All entries must be made using one-time override codes for deductions and earnings: Deductions AX-HX, 1X-8X, 10X-89X, AZ-IZ Benefits Earnings T (Federal and Provincial Tax), TQ (Québec, NWT and Nunavut Tax) P (CPP/QPP), U (EI), K (QPIP) Tax, CPP/QPP, EI, and QPIP must be entered as overrides. They are not automatically calculated. CY-HY, 1Y-8Y, 10Y-89Y SO, OE, PE, XE, VE, WE, O1-O9, O10-O99, X1-X5 Hours RT(or R), OT(or 1), DT(or 2), XT(or X), YT(or Y), L, W, T, Q, Codes 3-9 (hours) X1-X5, O1-O9, or O10-O99 if used as hours codes Permanent codes are not paid - e.g. SA, OP, Q1-Q9, Q10-Q99, Y1-Y5 Any signalled deductions are ignored. These amounts, if they do apply, must be entered as one-time override amounts - e.g., AX 12.00, HX 8.50, CX 15.00, CY T4A Coding Requirements Adjustments to move existing federal tax from a T4 to a T4A can be done by coding T negative and TS positive. Please contact your Service Delivery Team if you are trying to adjust ET = A or ET = B employees. Adjustments to post new federal tax onto a T4A can be done by coding TS positive. Please contact your Service Delivery Team if you are trying to adjust ET = A or ET = B employees. Characteristics and Features of Year-End Adjustment Runs The Payroll Funds Summary and the Executive Summary identify the output as belonging to a year-end adjustment run. T4s/RL-1s are not produced when a y-run is processed. T4s/RL-1s do not automatically follow a y-run, these must still be requested via IVR All year-end adjustments can be keyed by PC customers with four exceptions: 1. Matrix updates (earnings and deduction code changes) 2. Moving earnings between Business Numbers 3. Box 29 Employment Codes 51

52 Making Adjustments When Earnings are Stored by Province 4. Moving partial year-to-dates between provinces. These types of adjustments must be submitted to Ceridian via the Year-End Adjustment Spreadsheet, which can be found on the Ceridian web site ( Resources Guides Ceridian Customer Year-End Guides). Please see the SAMPLE Adjustment Spreadsheet for examples of year-end adjustment entries. If this affects you, clear communication and sufficient lead time (7 business days) is required for keying prior to the submission of your y-run. Y-run adjustments made have no effect on your EI History/ROEs. If corrections are required to amend your EI History/ROEs, then EI/ROE entries must be made to your 2018 input. Please contact your Service Delivery Team if you need assistance. Y-run adjustments made have no effect on QPIP history. If corrections are required to amend your QPIP history, then QPIP entries must be made to your 2018 input. Please contact your Service Delivery Team if you need assistance. All entries are processed against your year-end masterfile and have no effect on your 2018 masterfile or totals. (E.g., vacation and sick leave adjustments posted on a y-run do not affect your current accruals. You must adjust your accrual in a current pay run.) More than one year-end adjustment run can be processed. Identify the order of the processed y-runs based on the run date and run number printed on the lower righthand side of your reports. Only one y-run can be transmitted per day per payroll number. If multiple y-runs are required, adjustments keyed should reflect the additional change required since the last y-run was processed, with the exception of special codes Z31-Z50. See Coding the Other Information Area of the T4, page 56. No employee payments are created. All entries are forced to balance to zero net pay. IMPORTANT - No remittances are made for adjustments that affect any Government agencies. Any amounts owing requires you, the employer, to make the payment. No deduction cheques for third parties are produced. All entries for Terminated, Inactive and Leave employees are processed without having to change their status to A (Active). Name and Address changes can be made. To incorporate the changes into your 2018 masterfile, ensure that the data is also included in a 2018 payroll transmission to Ceridian. New employees can be set up on y-runs for the purpose of producing a 2017 tax form. However, new employees set up on 2017 y-runs will not exist in the 2018 Ceridian masterfile. If the employee is to be paid in 2018, re-enter the new employee information on your next regular payroll run. Making Adjustments When Earnings are Stored by Province If you have employees who worked in different provinces during the year, their earnings have been stored in the Ceridian system according to their province code (PC) at the time of processing. To make a correction to your employee s YTDs stored by province, the 52

53 Submitting Year-End Adjustments (Spreadsheet and Form Entries) method of correction is dependent on whether you are moving part of the earnings and deductions to an alternate province or if you are moving all of the YTDs. Moving all Earnings and Deductions Adjustments to move all earnings and deductions between provinces can be processed with a y-run by submitting a unique coding combination. If the employee is presently in the incorrect province code and all earnings and deductions are to be transferred to the correct province, two entries are required: PC and the correct province PR and the incorrect province Note: PC entries must precede PR entries For example: If an employee was set up in Ontario (PC 5) and should have been set up in Manitoba (PC 6), enter PC 6 then PR 5 to move all of the accumulated earnings and deductions from Ontario to the correct home province of Manitoba. Moving Part of the Earnings and Deductions Adjustments to move part of the earnings and deductions between provinces can be processed with a y-run. However, they cannot be keyed by the customer. They must be entered on the Year-End Adjustment Spreadsheet. For more information, see Submitting Year-End Adjustments (Spreadsheet and Form Entries), page 53. Advise your Service Delivery Team if you are submitting this type of adjustment so that sufficient time is available to have them keyed. Submitting Year-End Adjustments (Spreadsheet and Form Entries) There are four types of adjustments that Ceridian customers cannot key: 1. Matrix updates (earnings and deduction code changes) 2. Moving earnings between Business Numbers 3. Box 29 Employment Codes 4. Moving partial year-to-dates between provinces. These types of adjustments must be submitted to Ceridian via the Year-End Adjustment Spreadsheet, which can be found on the Ceridian website ( Resources Guides Ceridian Customer Year-End Guides). Please see the SAMPLE Adjustment Spreadsheet for examples of year-end adjustment entries. It is essential for balancing purposes that you provide separate totals for each code to which you are making adjustments. These adjustment amounts are edited and balanced to the totals that you have submitted. Ceridian will not be able to balance your adjustments if totals are not submitted. 53

54 Completing the Year-End Adjustment Spreadsheet Note: If you are a PC input customer, advise your Service Delivery Team that you are submitting this type of adjustment so that sufficient time can be scheduled to have the keying completed prior to the transmission of your y- run. Completing the Year-End Adjustment Spreadsheet These instructions and codes are to assist you in recording year-to-date adjustments for the purpose of T4s/RL-1s. You need only indicate adjustments for items that affect T4s/RL-1s. All amounts (other than the special Z31-Z50 codes for the Other Information area) add to or subtract from the existing year-to-date amounts shown on your year-end reports. For negative values, enter a leading minus sign. 1. Adjusting YTD Gross, statutory deductions and Québec provincial deductions. Indicate the code to be adjusted as well as the amount. Total all columns at the bottom of the form. Description Standard Codes + If EU = P or If EU = 2 Gross G GP G2 Income Tax T TP T2 EI U UP U2 QPIP K KP K2 CPP P PP P2 QPP M QuébecTax L The codes in the columns If EU = P and If EU = 2 only distribute the YTD values, they do not add to existing amounts. Examples of how to make YTD adjustments between 2 BNs can be found in the SAMPLE Adjustment Spreadsheet, examples 5 7, located on ( Resources Guides Ceridian Customer Year-End Guides). TS RS Amounts shown in the tax field of the T4A will subtract the amount from T4 tax. If the amount is not in the T4 tax, add a corresponding T amount. Amounts shown in the tax field of the RL-2 will subtract the amount from RL-1 tax. If the amount is not in the RL-1 tax, add a corresponding L amount. 2. Deductions and Benefits Refer to your Deduction/Benefit Matrix which identifies the codes, their descriptions and the tax form box(es) to which the year-to-date amount is routed. Through coordination with your Service Delivery Team, codes not currently in use on your payroll can be used to record your taxable benefits, Pension Adjustment amounts, and any new items required for T4/RL-1 purposes. 54

55 Completing the Year-End Adjustment Spreadsheet Code Column Employer Side A Column A N/A B Column B N/A CE-HE Columns CE/CR to HE/HR CR-HR 1E-8E Columns 1E/1R to 8E/8R 1R-8R 10E-89E Columns 10E/10R to 89E/89R 10R-89R AZ-IZ Columns AF-IF N/A 3. Earnings The following codes distribute earnings only and do not affect gross pay totals. If gross pay is to be adjusted as well, code equal amounts as G (Gross). Refer to your Earnings Matrix, which shows the codes, descriptions and the tax form box(es) to which the year-to-date amount is routed. OE Other Earnings VE Vacation Pay Paid PE Premium Earnings WE Holiday Pay Paid XE Extra Earnings O1-O9 Additional Other Earnings Codes (alpha O) OT Overtime Dollars O10-O99 Additional Expanded Earnings Codes (alpha O) X1-X5 Add. Extra Earnings DT Double Time Earnings Through co-ordination with your Service Delivery Team, codes not currently in place can be set up to route specific amounts to the appropriate boxes on the tax forms. 4. Reallocation of earnings and deductions between provinces Only enter the province code if this employee has moved from one province to another during the calendar year, and the adjustment applies to the previous province. Any adjustments with a province code in Column 79, affects the employee s totals in their current province. These adjustments only distribute the YTD values - they do not add to the employee s totals. Examples of such adjustments can be found in the SAMPLE Adjustment Spreadsheet, example 4, located on ( Resources Guides Ceridian Customer Year-End Guides). 5. Special codes for Other Information area of the T4 In some cases, CRA requires more information to be reported in the Other Information area at the bottom of the employee s T4. The following Ceridian system codes in Coding the Other Information Area of the T4, page 56 and respective amounts allow for the correct reporting of these items in this area. Note: These codes replace any previous values that may have been entered. 55

56 Completing the Year-End Adjustment Spreadsheet Coding the Other Information Area of the T4 Special Comments: The Other Information area at the bottom of the T4 slip has boxes for you to enter codes and amounts that relate to employment commissions, taxable allowances and benefits, deductible amounts, and other entries if they apply. The boxes are not pre-numbered as in the top part of the slip. The CRA Codes table on page 57 lists all the CRA codes, which can be listed in the Other Information area of the T4, along with the associated Ceridian system codes. In the column Ceridian Code, if the word Permanent appears, it means it is possible to have a permanent option in your masterfile that automatically records the YTD values of that payroll code on the T4 slip with the appropriate CRA code. Refer to your year-end balancing reports to identify the payroll code that has been set up for this purpose. If you have to make year-end adjustments, use the payroll code that is specific to your payroll. If there is not a permanent code set up on your masterfile and you need to report these amounts, advise your Service Delivery Team that you require a code to do so. Remember that you must enter dollar values as well, as they will not have accumulated throughout the year. In the Ceridian Code column, if a Z code is listed, you should use this 3-digit Z code along with a value to report the amount in the Other Information area of the T4. In most cases, these amounts are part of a value already appearing in another box on the T4, and their amounts cannot be determined until year-end. Ceridian Z codes (i.e. Z39 Stock Options Deduction) are processed only on y-runs. They cannot be processed throughout the year on regular pay runs. These Z codes replace, they do not add together. If an employee has multiple entries made to the same Z code, the system accepts the last entry only (regular payroll codes add to year-to-date values) Z codes are entered without decimal points. For example: to enter $ for Medical travel - key or code Z Where to enter your data: 1. PRISM users - Make Z code entries less than $999, on the Data Entry screen, in Regular mode. Z code values exceeding $999, must be submitted to Ceridian for processing via the Year-End Adjustment Spreadsheet. For more information, see Submitting Year-End Adjustments (Spreadsheet and Form Entries), page 53. For further information, refer to CRA s Employers Guide - Payroll Deductions and Remittances(T4001). A direct link to CRA publication can be obtained by clicking Resources Compliance Centre Top HR and Payroll Resource Websites. Scroll down to the CRA section. The following table lists all the CRA codes, which can be listed in the Other Information area of the T4, along with the associated Ceridian system codes. 56

57 Completing the Year-End Adjustment Spreadsheet CRA Codes Description CRA Code T4 Box Action Required Ceridian Code Board and lodging Code 30 Box 14 Enter amount as required Special work site Code 31 None Enter amount as required Travel in a prescribed zone Medical travel assistance Personal use of employer s automobile or motor vehicle Interest-free and lowinterest loans Employee homerelocation loan deduction Security options benefits Security options deduction - 110(1)(d) Other taxable allowances and benefits Security options deduction - 110(1)(d.1) Employment Commissions Code 32 Box 14 Enter amount as required Code 33 None Enter the portion of Code 32 that applies Code 34 Box 14 Enter amount as required Code 36 Box 14 Enter amount as required Code 37 None Enter the deductible portion of the amount in Code 36 Code 38 Box 14 Enter amount as required Code 39 None Enter 50% of the amount reported in Code 38 for these shares Code 40 Box 14 Enter amount as required Code 41 None Enter 50% of the amount reported in Code 38 for these shares Code 42 Box 14 Enter amount as required Permanent Z31 Permanent Z33 Permanent Permanent Z37 Permanent Z39 or Permanent Permanent Z41 Permanent Canadian Forces personnel and police deduction Code 43 Box 14 Enter amount as required Permanent Eligible retiring allowances Code 66 None Enter amount as required 57 Permanent

58 Completing the Year-End Adjustment Spreadsheet Description CRA Code T4 Box Action Required Ceridian Code Non-eligible retiring allowances Indian (exempt income) eligible retiring allowances Indian (exempt income) non-eligible retiring allowances Municipal officer s expense allowance Indian (exempt income) - Employment Past service contributions for 1989 or earlier years while a contributor Past service contributions for 1989 or earlier years while not a contributor Workers compensation benefits repaid to the employer Fishers Gross income Fishers Net partnership amount Fishers Shareperson amount Placement or employment agency workers Gross income Code 67 None Enter amount as required Code 68 None Enter amount as required Code 69 None Enter amount as required Code 70 None Enter non-taxable portion of allowance Code 71 Various (depend ant on TD1-IN determin ation) Change employee Tax Status code Code 74 None Enter the amount from Box 20 that belongs to this period Code 75 None Enter the amount from Box 20 that belongs to this period Code 77 None Enter amount of WCB benefits repaid to the employer which was previously included in the employee s salary Code 78 None Enter amount as required Code 79 None Enter amount as required Code 80 None Enter amount as required Code 81 None Enter amount as required Permanent Permanent Permanent Z40 ET = I Z44 Z45 Z47 Z48 Z49 Z50 Z34 or Permanent 58

59 Completing the Year-End Adjustment Spreadsheet Description CRA Code T4 Box Action Required Ceridian Code Taxi drivers and drivers of other passenger-carrying vehicles Gross income Barbers or hairdressers Gross income Code 82 None Enter amount as required Code 83 None Enter amount as required Public transit pass Code 84 Box 14 Enter the amount as required. Enter the employer paid portion to Code 84 (Jan 1 to Jun 30) and to Code 40 (Jan 1 to Dec 31). Employee-paid premiums for private health services plans Security options election Code 85 None Enter amount as required Code 86 None Enter the cash-out amount required Z35 or Permanent Z36 or Permanent Permanent Permanent Z38 Emergency services volunteer exempt amount Indian (exempt income) selfemployment Code 87 None Enter the amount of the exempt payment (up to $1,000) Code 88 None Enter the amount of the tax-exempt gross earnings Z32 SQ=S Completing Box 29 of the T4 Employment Codes Use the following codes if you are completing T4 slips for employees in the described situations. Note: These types of adjustments cannot be keyed by the customer and must be submitted to your Service Delivery Team for processing on a y-run. Advise your Service Delivery Team if you are submitting this type of adjustment so that sufficient time is available to have them keyed prior to submitting your y-run. Situation CRA Code for T4 Box 29 Ceridian Coding Required Placement or employment agency workers 11 T4E=11 59

60 Completing the Year-End Adjustment Spreadsheet Situation CRA Code for T4 Box 29 Ceridian Coding Required Taxi drivers or drivers of other passenger-carrying vehicles 12 T4E=12 Barbers or hairdressers 13 T4E=13 Withdrawal from a prescribed salary deferral arrangement plan 14 T4E=14 Seasonal Agricultural Workers Program 15 T4E=15 Detached employee - Social security agreement 16 T4E=16 Fishers Self-employed 17 T4E=17 60

61 How to Initiate the Production of Your Tax Forms with IVR Once you are confident that you have processed all required year-end adjustments, and you have validated the most recent copy of your year-end reports, you are ready to initiate the production of your tax forms. Do this by telephone using Ceridian s IVR (Interactive Voice Response) Service. IVR Interactive Voice Response The initiation of your tax forms (T4s, T4As, RL-1s, RL-2s) is easy and convenient with Ceridian s IVR (Interactive Voice Response) Service. You are able to dial in to request your T4s/RL-1s and later call again to check on the status of your request. Important Information on When to Access IVR: Tax form initiation is available via IVR from January 3, 2018 to February 23, To access the IVR service: 1. Dial Select your language of choice. 3. Select Account Management. 4. Identify yourself with your Branch, Payroll ID,and PIN (this is the same access information used when calling in for payroll totals). If you do not have this information, please contact your Service Delivery Team. 5. Follow the voice prompts for Tax Form Processing. Note: IVR can be utilized for initial requests only. To initiate a re-run or re-print, please contact your Service Delivery Team. 61